Business Law

Ask a Business Lawyer. Get Business Law Questions Answered ASAP.

Ask a Lawyer,
Get an Answer ASAP!

Business Law

1.) If a bank has foreclosed on investment property and sends

Customer Question
notice of a judgement hearing...
1.) If a bank has foreclosed on investment property and sends notice of a judgement hearing or law suit, I know the court can seize all bank account in our personal name, but can they also seize our Business account (Inc.) since we are the owners. Note, the foreclosure was not part of that business, but in another LLC? 2.)Can they make us cash in our IRA's, which are in mutual funds. 3.)We have rural property with no liability owed on it, but it has a 2 year contract with a lumber mill company to clear cut the timber. Can this be taken seized?
Submitted: 7 years ago.Category: Business Law
Show More
Show Less
Ask Your Own Business Law Question
Answered in 2 hours by:
12/2/2010
Business Lawyer: Richard - Bizlaw, Attorney replied 7 years ago
Richard - Bizlaw
Category: Business Law
Satisfied Customers: 10,705
Experience: 30 years of corporate, litigation and international law
Verified
When you say foreclosed, has the property been sold at an auction and the amount for which the property was sold was less than the debt? Is there a deficiency judgment? Have you discussed the situation with the lender and is there a possibility for working out a reduced amount or payment plan for the deficiency?
Ask Your Own Business Law Question
Customer reply replied 7 years ago
It's a long story, but I'll try to hit the main points. We had a JVpartnership with a builder as the investor (along with many other subs he used to build). The chief loan officer "banker" who approved and handled many of the construction and land acquition loans (lots) was involved in some "not so legal" transactions by influence of bldr. Example: 1) gave draws to bldr without being able to produce the inspection that verified the draw; 2) bldr built his own house by asking subs to charge their matls and services to other investors loans; 3) allowed bldr to increase amount of loan at renewal date without new appraisal justifying additional money necessary to finish houses (cash was then given to bldr at the renewal closing) The bldr closed company in 2008 owing 22M and leaving the investors with cleaning up the liens, back debts, legal issues, etc. When we (investors) received our documentation and found these transactions (+others) fraudulent, most investors went to banker and most construction loans were forgiven at that point. We continued to try to hold to our committment and paid the interest for another year. When finances became difficult, we visited all our loan officers for solutions. When we met with this banker, he told us to hold off and let him see what he could work out. He made us a verbal offer to build on our lots and the lots held by the bank and he would roll the lot loans into the constr. loans with no liability to us. The bank would then resume responsibility for debts. 2 week later, we tried to meet with banker to discuss further. (Jan 2009) To date, we have not been able to reach banker by email, fax, phone, cell, home no, personal visit to bank, thru assistants, etc. After 6 months we gave up and assumed he haf forgiven our loans, because monthly coupons stopped coming, and at loan maturity, we weren't notified to renew. At end of 2009, bank went to FDIC. Apparently banker had not written off our loans or done anything with them, because Nov/Dec 2009, I received a call that the props were being foreclosed. A new bank SB&T had bought our loans on the steps at 1/3 the cost of our loan balance. The new bank is pursuing legal judgement for balance of debt, 2 yrs of interest, all other legal & associated fees for foreclosure & court costs. I went to confirmation hearing and the judge let me tell my situation and told me he truly felt we had been taken, but SB&T had processed the foreclosure correctly and therefore, he had to award them opportunity to sue. It has taken them almost 6 months now to get back to me. I have expressed my feelings to their attorney, in that I don't feel I owe this bank anything. I didn't take out the loans with them and I can most likely ask for a jury trial and have all the other investors disposed. But it's not what I want to do-costly for me (not much left to pay for legal fees, etc) and mentally it will be very hard. During all this, my husband had 2 massive strokes and has been in rehab since Nov 2009, one stroke requiring brain surgery, my mother of 92, who lived with us also went into heart failure and passed away within 2 weeks of the surgery, and my construction business partner on a large strip center mall, now in another litigation also passed 2 weeks after my mom. I'm 61, and having to manage our main business, drywall subtracting company, 2 strip center development projects, 4 rental properties, a lake house, and manage the timber sales at our rural land in Milledgeville. I have 8 other loans with 4 banks. I'm trying to hold on to our retirement, which is all the liquid assets we have left. So,my questions relate to trying to make the best decision for securing as many assets as possible, without losing everything. The other bankers are working with me, but realistically, it's only a matter of time before the larger loans (1.7M and 66,000) will be foreclosed on. The drywall business isn't bringing in enough money to balance out the interest on the loans each month. Down to last cash resource.
Business Lawyer: Richard - Bizlaw, Attorney replied 7 years ago

I am sorry to hear of your predicament. If there is a personal judgment against you, your personal assets can be levied upon. However, the lien of the deficiency judgment does not take precedence over an existing lien on the property in question. For example, your personal home mortgage would take precedence over the lien of the judgment. This is important because the judgment creditor may not be prepared to pursue such an asset knowing that they must pay off the prior liens otherwise they foreclose themselves out of the property.

 

On your business that is in a LLC name, they judgment creditor has the right to receive the distributions you receive from the business that are profits. Salary you receive is subject to the statutory limitation of 25% of the pay after withholding taxes and social security.

 

Your IRA are exempt from execution so long as they have any anti alienation provision in them. You should make sure they do. Money in 401k plans and pensions are also exempt from execution.

 

On the facts you have stated, I would not abandon defense of the case even if you have to do it yourself. You have a good argument that the bank committed fraud through its bank officer and that the debt itself is the product of fraud in which the bank officer conspired. Your goal is to get to tell your story to a jury. The new bank may decide to settle by just taking the property. If you indicate that you will fight, they may be more reasonable.

 

Good luck

 

If this answer is responsive to your question, please accept it. That is how we are compensated. I would also be appreciated if you provided feed back on your view of the answer. Finally, if the answer was especially helpful you can provide a bonus. If I can be of further assistance or you have other questions in the future you can ask for me and reach me at this site.

This communication is not intended as legal advice. A local attorney should always be consulted for legal advice. No client/attorney relationship is intended or created by this communication.

Richard - Bizlaw
Category: Business Law
Satisfied Customers: 10,705
Experience: 30 years of corporate, litigation and international law
Verified
Richard - Bizlaw and 87 other Business Law Specialists are ready to help you
Ask your own question now
Customer reply replied 7 years ago

The new bank hasn't actually requested a judgement hearing date, but sent docs indicating their intention. Which is why I'm undecided whether to settle or pursue jury trial. They want more than I feel is reasonably theirs, considering what I found had gone on for several years with our loans with this banker. I feel the original bank made more than their share of our money on previously satisfied loans.

Last question, related to the land we hold for timber management, which is under a 2 year contract to clear cut. Should SB&T move forward with pursuing a judgement and win (I'm truly trying to be proactive.We may not get to this point, but I want to understand my rights and be prepared for the outcome), can they pursue taking possession of this land to satisfy the amount of debt they are anticipating.? Or is this land secure until the lumber contract is completed? We've already been paid for 75% of the sale of the timber, so I would think because it's a binding and registered contract, they would be less likely to go for it. Your thoughts.........

Business Lawyer: Richard - Bizlaw, Attorney replied 7 years ago

If they levied on this land it would be subject to the contract. They would have to put the land up for sale subject to the contract. Alternatively they could collect the remaining amounts due you under the contract. You might consider putting the land in a LLC which would limit their ability to force a sale. This area can get technical and you would need to speak to an attorney to discuss all the issues but it would certainly slow them down on the land.

 

If this answer is responsive to your question, please accept it. That is how we are compensated. I would also be appreciated if you provided feed back on your view of the answer. Finally, if the answer was especially helpful you can provide a bonus. If I can be of further assistance or you have other questions in the future you can ask for me and reach me at this site.
This communication is not intended as legal advice. A local attorney should always be consulted for legal advice. No client/attorney relationship is intended or created by this communication.

Richard - Bizlaw
Category: Business Law
Satisfied Customers: 10,705
Experience: 30 years of corporate, litigation and international law
Verified
Richard - Bizlaw and 87 other Business Law Specialists are ready to help you
Ask your own question now
Customer reply replied 7 years ago
Thank you so much. The information was very helpful and given me new insite as to resolving these issues.
Business Lawyer: Richard - Bizlaw, Attorney replied 7 years ago
You are welcome and thank you for accepting the answer.
Ask Your Own Business Law Question
Ask Richard - Bizlaw Your Own Question
Richard - Bizlaw
Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10,705
10,705 Satisfied Customers
Experience: 30 years of corporate, litigation and international law

Richard - Bizlaw is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Infolawyer

Infolawyer

Attorney

1,851 satisfied customers

Experienced lawyer

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

1,611 satisfied customers

Run my own successful business/contract law practice.

MShore Law

MShore Law

Attorney

1,233 satisfied customers

Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements

RGMacEsq

RGMacEsq

Attorney

751 satisfied customers

Licensed Texas General Practice Attorney

Barrister

Barrister

Attorney

646 satisfied customers

17 years practicing attorney, JD, BA, MBA

Ely

Ely

Attorney

577 satisfied customers

Counselor at Law.

J.Hazelbaker

J.Hazelbaker

Attorney

393 satisfied customers

Experienced and trained in the area of business law.

< Previous | Next >

Related Business Law Questions
I am filing a new business LLC in Texas. I just did an
I am filing a new business LLC in Texas. I just did an assumed name search through the Texas Secretary of State website and it has not been taken. What steps do I need to create this entity?… read more
TaxAttorneytoHelp
TaxAttorneytoHelp
Owner
Doctoral Degree
2,542 satisfied customers
My business is registered in Delaware as an LLC with a
Hi Pearl, my business is registered in Delaware as an LLC with a partner. My partner is no longer with the company. I would like to move the business to PA where I live. I am also changing the name of… read more
Roy Hadavi
Roy Hadavi
Attorney
Juris Doctorate
1,003 satisfied customers
What skill or tape does the real estate LLC investment need
What skill or tape does the real estate LLC investment need a full prospectus or to be a registered security? I'm doing my first non-residential commercial project and one of the potential investors p… read more
Richard - Bizlaw
Richard - Bizlaw
Attorney
10,705 satisfied customers
I have a client who has an LLC, an electrical business, he
I have a client who has an LLC, an electrical business, he wants to start another business. His question is this: can he keep it under the original LLC, and use another name also?… read more
TaxAttorneytoHelp
TaxAttorneytoHelp
Owner
Doctoral Degree
2,542 satisfied customers
My wife started the business as an LLC and last year changed
My wife started the business as an LLC and last year changed it to a Scorp. I run the business for her (non paid) and have set up a bank account and checks in the new Scorp. 1. Do I need to phase out … read more
lucy7368
lucy7368
Juris Doctor
763 satisfied customers
The 60% business owner to an LLC with no articles of
the 60% business owner to an LLC with no articles of organization, has done things that makes all of us want to separate. however the 40% owners hold all MHIC licenses. Can the 60% just move the compa… read more
Infolawyer
Infolawyer
Attorney
Doctoral Degree
1,851 satisfied customers
I have a LLC business in the state of Texas. It is currently
I have a LLC business in the state of Texas. It is currently a sole proprioter. If I want to add 2 partners do I need to change it to a corporation? Or can I leave as is and just generate an agreement… read more
Ray
Ray
Lawyer
Doctoral Degree
30,899 satisfied customers
I am in a Partnership LLC in PA and my business partner has
I am in a Partnership LLC in PA and my business partner has never paid me her share of the initial purchase of inventory as I paid for it on my personal credit card. Since she has never paid if it her… read more
LegalGems
LegalGems
Juris Doctorate
10,720 satisfied customers
What's the "Best" way to set up my LLC business with this
What's the "Best" way to set up my LLC business with this scenario and pay myself along with one other employee/partner? -- Currently a sole proprietor with two businesses in very closely related fiel… read more
Richard - Bizlaw
Richard - Bizlaw
Attorney
10,705 satisfied customers
I'd like to look into opening an business account for an LLC
Second opinion] I'd like to look into opening an business account for an LLC with a member that's currently incarcerated... and a personal account for the person that's incarcerated. My guess is a tru… read more
Richard - Bizlaw
Richard - Bizlaw
Attorney
10,705 satisfied customers
My son invested money in a small business that he also works
Hi, my son invested money in a small business that he also works for and is leaving the company. The owner has agreed to repay the investment plus interest. We feel there needs to be a legal document … read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
I have an existing TX LLC, doing business in CA. This LLC
Hello. I have an existing TX LLC, doing business in CA. This LLC will generate income from all over the world. I am going to register the TX LLC as a foreign LLC doing business in CA. At the same time… read more
Roy Hadavi
Roy Hadavi
Attorney
Juris Doctorate
1,003 satisfied customers
Regarding terminating a business contract with a billing
Regarding terminating a business contract with a billing company that processes our billing. Both I and my partner signed contract as required by our Operating Agreement for the business . The billing… read more
LegalGems
LegalGems
Juris Doctorate
10,720 satisfied customers
Converting my llc business to a c corporation and looking
Converting my llc business to a c corporation and looking for a lawyer to sign the paperwork … read more
Richard - Bizlaw
Richard - Bizlaw
Attorney
10,705 satisfied customers
I'm starting a general contracting business in Chicago. I'm
Hello. I'm starting a general contracting business in Chicago. I'm considering forming an LLC as a holding company for future DBAs for each part of the business, including construction, cleaning/maint… read more
Roy Hadavi
Roy Hadavi
Attorney
Juris Doctorate
1,003 satisfied customers
I have an investment contract with a local business. I was
I have an investment contract with a local business. I was suppose to get 30% of profits monthly. They have defaulted on the agreement. What can I do? … read more
Roy Hadavi
Roy Hadavi
Attorney
Juris Doctorate
1,003 satisfied customers
I have a business partner for an LLC in Florida. He is
Hello, I have a business partner for an LLC in Florida. He is withdrawing and says I have to buy him out. Is that correct, do I have to buy him out? … read more
Roy Hadavi
Roy Hadavi
Attorney
Juris Doctorate
1,003 satisfied customers
I invested in an LLC on a property in TX and have been
I invested in an LLC on a property in TX and have been looking for the managers for a few years now. On my own I found that the property was red tagged, and sold for a loss in 2011. My investment was … read more
DrakeLAW
DrakeLAW
Juris Doctorate
984 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x